During October, 14,000 Direct Labour Hours Were Worked at a Standard

question 54

Multiple Choice

During October, 14,000 direct labour hours were worked at a standard cost of £40 per hour. If the labour rate variance for October was £70,000 favourable, the actual cost per labour hour must be

• A)£35.
• B)£40.
• C)£45.
• D)none of the above.